Market Snapshot | January 6, 2023

Corn futures are steady to fractionally lower at midsession.

Corn took early spillover strength from soybeans, though buyer interest has mostly faded at midmorning.
Export sales for week ended Dec. 29 of 319,200 were shy of expectations between 400,000 MT and 1.0 MMT, and well below the previous week’s sales of 781,583 MT.
A daily export sale was also reported this morning to Mexico for 112,000 MT, with 89,600 MT for delivery in the 2022-23 marketing year and 22,400 MT in 2023-24.
World Weather Inc. notes that rain will be too infrequent and light during the next two weeks in Argentina to prevent further declines in crop conditions and soil moisture while hot temperatures through at least next week accelerate increases in crop stress and declines in yield potentials.
March corn traded as high as $6.59 1/2, just below initial resistance at the 40-day moving average of $6.60 1/2. Initial support lies at $6.48 1/4.

Soybeans are 12 to 17 cents higher, while march soymeal is nearly $7.00 higher and March soyoil is around 70 points higher.

Soybeans are posting corrective gains after trading lower in the first three sessions of the year.
Export sales for week ended Dec. 29 totaled 721,000 MT, within the range of expectations between 400,000 MT and 1.2 MMT, and up slightly from the previous week’s figure of 705,813 MT.
USDA also reported a daily sale of 132,000 MT of soybeans to “unknown destinations” for the 2022-23 marketing year.
Much of Brazil outside of some southern areas will continue to see regular rounds of rain through the next two weeks, keeping conditions for most developing crops favorable while slowing the harvest of early soybeans in Mato Grasso, according to World Weather Inc.
March soybean futures traded as high as 14.92, finding resistance at the 10-day moving average of $14.93 1/2. Support remains at the 40-day moving average of $14.67 1/2.

SRW futures are 1 to 2 cents higher, while HRW futures are 3 to 4 cents lower. Spring wheat is steady to 2 cents lower.

Winter wheat turned higher overnight on corrective buying but buyer interest has waned.
Wheat export sales for week ended Dec. 29 were reported at 47,100 MT, well below expectations ranging between 200,000 and 575,000 MT and the previous week’s net sales of 478,102 MT.
Australian wheat production is expected to rise to a record 42 MMT as yields are topping already high expectations, according to Reuters.
March SRW futures reached as high as $7.56 3/4 with initial resistance lying at $7.59 3/4 and first support at $7.36.

Live cattle and feeders are mildly lower at midsession.

Nearby live cattle are trading within the previous session’s trading range.
Cash cattle trade has been disappointing this week, with trade in the Southern Plains starting at $157, which is steady with week-ago, though some feedlots continued to hold out for higher prices. Trade in the northern market was limited.
Feedlots may get packers to pay higher prices than last week, but the gains won’t likely be as strong as initially anticipated.
Choice beef cutout values fell $1.26 Thursday to $281.63, while Select rose 55 cents to $256.95. Loads were notable at 132 loads.
USDA reported net beef sales reductions of 6,900 MT for 2022 and sales of 12,500 MT for 2023.
Near-term support for February live cattle lies at $156.88. Near-term resistance stands at the 10-day moving average near $157.61.

Hog futures are lower midsession, led by sharp losses in nearby contracts.

Lean hogs are lower for the sixth straight session as cash market pressure persists.
The CME lean hog index is 80 cents lower to $78.26 (as of Jan. 4), a new low in the seasonal decline.
The pork cutout fell $1.51 on Thursday to $84.32 with a decline in all cuts expect ribs.
Traders will likely remain cautious buyers in nearby futures until cash fundamentals signal a seasonal low.
USDA reported net pork sales reductions of 51,900 MT for 2022 and net sales of 73,600 MT for 2023.
February lean hog futures dropped as low as $80.065, the lowest level since Oct. 13. Key support is at the December low of $80.325.

Tags